Should I pay off old credit card debt if it's a struggle?

My first syndicated Dear Penny column for The Penny Hoarder: A reader asks "What will actually happen if I just stop paying old debts?"

One of the most important steps we can take in dismantling budget culture is to ditch the shame and obligation we attach to debt. I’ve said it a thousand times, and I’ll continue to repeat it for the folks in the back: Eliminating debt doesn’t have to be a priority.

So I was thrilled when the first question I got to answer for the Dear Penny column for The Penny Hoarder was from someone asking explicitly whether or not they needed to pay off their credit card debt.

Dear Penny is a long-running column at The Penny Hoarder (where I was once a staffer and have been a freelancer for years), helmed by various writers over the years. I look forward to taking up the mantle and helping readers tackle tricky money questions.

If you want your questions answered, send them anytime to AskPenny@thepennyhoarder.com.

This week’s question was about the burden of old credit card debt:

Dear Penny,

I have some old credit card debt. It's enough to seriously strain my finances, but not enough to get loan consolidation. I have been trying to pay two individual card companies even though the accounts are closed. I really can't afford it. One of them even told me that the debt is so old that they can't really force me to pay.

I just read an article that said if I make payments, it resets the statute of limitations, so if paying is a struggle, I'd be better off not paying. These debts range from $500 to about $1,500. What will actually happen if I just stop paying old debts on closed accounts?

Thank you!

— Indebted

Go to The Penny Hoarder to read my full answer, including the details behind the statute of limitations, the risks of not paying off the debt and what really happens to small, old debts if you don’t repay.

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